Great Depression

Stock Market Crash

Another leading component to the start of the Great Depression. The stock became very popular in the 1920's, then in 1929 in took a steep downturn and many lost their money and hope they had put in to the stock.

How did the stock market crash?

many middle income people buying stocks on margin, paying fraction of cost of stock and borrowing the rest from a stock broker. assuming stocks rise, borrower profits and can pay broker remaining owed money. they didn't want very high stocks so investors sold stocks

Herbert Hoover

Republican candidate who assumed the presidency in March 1929 promising the American people prosperity and attempted to first deal with the Depression by trying to restore public faith in the community.

Laissez-faire

Idea that government should play as small a role as possible in economic affairs.

Hoover Dam

The only good thing Hoover did

Bonus Army

Group of WWI vets. that marched to D.C. in 1932 to demand the immediate payment of their goverment war bonuses in cash

Franklin Roosevelt (FDR)

a democrat who became united states president in 1933; his program to alleviate the problems of the great depression became known as the "new deal" and he remained president through WWII.

Election of 1932

Democrat Franklin D. Roosevelt, beat the Republican, Herbert Hoover, who was running for reelection. FDR promised relief for the unemployed, help for farmers, and a balanced budget.

FDR's approach to the depression

Pragmatic, hired advisors that helped formulate new deal policies

pragmatic

Cautious but would do anything that worked

Frances Perkins

U.S. Secretary of Labor from 1933 to 1945, and the first woman ever appointed to the cabinet.

Shantytowns

little towns consisting of shacks

Urban Depression

People resorted to scavenging for food, soup kitchens, and bread lines

Dust Bowl

A drought in the 1930s that turned the Great Planes very dry.

Three goals of the new deal

Relief, Recovery, Reform

New Deals

The plan (a series of programs, most notably, Social Security) put into action by Franklin Delano Roosevelt that attempted economic reform during the Great Depression; wanted relief for the needy, economic recovery, and financial reform

Examples of things done from the new deal

Ended prohibition, direct relief for the unemployed, increased taxes on wealthy, federal subsidies for farmers

Emergency Banking Act

Closed all banks until they passed a government inspection

Federal Deposit Insurance Corporation (FDIC)

Insures bank deposits up to $5000 (250k today)

Security and Exchange Commission (SEC)

serve as a govt watchdog over the nations stock markets

Agricultural Adjustment Act

Provided financial aid to farmers if they cut back on production

Tennessee Valley Authority (TVA)

Created jobs building a series of dams to control flooding and generate electricity

Rural Emergency Relief Administration

Loaned money to electric companies to build power grids in isolated rural areas

Federal Emergency Relief Administration (FERA)

Gave federal money to local/state agencies to help the unemployed

Social Secuirty Act

Provided unemployment insurance, retirement pensions, and aid to families with dependent children

Federal Housing Administration (FHA)

Provided small loans to householders; one of FDR's lasting programs

National Industrial Recovery Act

set standards in wages, production,and prices. Regulated American businesses.

Civilian Conservation Camps

Hired young, unemployed people to do restoration projects throughout the country, employed over 3 million people.

Works Progress Administration (WPA)

Put people to work on major construction projects

Huey long

Political leader from Louisiana who criticized the New Deal